INSOLVENCY SUPPORT GROUP LIMITED

Executive Summary

Insolvency Support Group Limited is a micro-sized, niche business support service provider with limited financial resources and a minimal operational footprint. While the insolvency support sector presents growth opportunities amid economic pressures, the company’s negative working capital, reduced staffing, and underdeveloped market presence constrain its competitive positioning. Strengthening liquidity, expanding service capacity, and enhancing digital engagement will be critical for future viability and growth within this competitive sector.

INSOLVENCY SUPPORT GROUP LIMITED - Analysis Report

Company Number: 13563644

Analysis Date: 2025-07-29 16:53 UTC

1. Industry Classification
   Insolvency Support Group Limited operates primarily within SIC code 82990 — "Other business support service activities not elsewhere classified." This sector encompasses diverse support services to businesses that do not fit neatly into traditional categories such as consultancy, administrative services, or outsourcing. Typically, companies in this niche provide specialised operational or advisory support, often tailored to specific challenges like insolvency, restructuring, or compliance. The sector is characterised by a mixture of micro to small enterprises, often with limited fixed assets but reliant on human capital and professional expertise.

2. Relative Performance
   Examining the financials for the year ending August 2023, Insolvency Support Group Ltd shows:

• Current assets of £27,132 against current liabilities of £27,790, resulting in a marginal negative net working capital (-£658).
• Net assets stand at a modest £866, reflecting a very small equity base.
• The company employs 1 person on average, down from 6 the previous year, indicating a significant operational scale-back.
• Cash reserves of £5,148 are limited, and trade debtors (£21,984) make up the majority of current assets, showing dependency on receivables collection.

Compared to typical industry benchmarks for business support services in the UK, which often feature small but positive working capital and equity reflecting ongoing operations, this company is at the lower end of the scale. Many peers maintain stronger liquidity and equity buffers to weather client payment cycles and operational expenses. The lack of turnover or profit/loss data disclosed also restricts full profitability assessment but the static net assets and negative working capital suggest minimal growth or profitability in recent periods.

3. Sector Trends Impact
   The business support services sector is influenced by economic cycles, regulatory changes, and technological adoption:

• The insolvency and restructuring niche is sensitive to economic downturns and increases in business distress, which can drive demand for advisory and support services.
• Post-pandemic recovery and ongoing supply chain challenges have positioned insolvency-related support as a critical service, though competition is intense.
• Digitisation and automation trends are pushing firms in this sector to adopt technology for efficient case management and client reporting.
• Increasing regulatory scrutiny around insolvency practices demands strong compliance and professional standards, potentially raising barriers to entry.

Given these trends, Insolvency Support Group Ltd’s minimal asset base and reduced workforce may limit its capacity to capitalise on growing demand or invest in necessary technology upgrades. Its "under construction" website status also suggests a nascent or developing market presence, which may hamper client acquisition.

4. Competitive Positioning
   Insolvency Support Group Ltd appears to be a micro or very small niche player within the broader business support services sector. Strengths include:

• Direct control by a single director and majority shareholder, allowing agile decision-making.
• Low fixed asset base reduces capital intensity and fixed overheads.

Weaknesses relative to typical competitors:

• Negative net working capital indicates potential liquidity challenges.
• Significant reduction in staff from 6 to 1 may signal downsizing or operational difficulties.
• Lack of audit and limited disclosure on profitability constrains transparency and may reduce client confidence.
• Limited online presence and partially built website restrict marketing reach and brand development.

Competitors in this sector often demonstrate stronger liquidity, diversified services, established client bases, and investment in digital platforms, enabling scalability and resilience. Insolvency Support Group Limited’s current financial and operational profile suggests it is still establishing its footing and faces challenges to compete effectively in a demanding market.